Today’s news in brief-25/3/25

WH Smith has successfully completed a refinancing deal, securing a £200m US Private Placement and a new £120m bank term loan. The move diversifies its debt financing ahead of a potential sale of its high street business, which includes over 500 stores. Two firms, Alteri Investors and Modello Capital, remain in contention for the acquisition, with a decision expected this spring. The retailer’s travel division continues to outperform its high street arm, which saw profits fall 9% to £39m last year.

THG has raised £90m in new funding, including a £60m contribution from founder Matthew Moulding. The proceeds will help reduce debt, including early repayment of a £109m Term Loan A and downsizing a Term Loan B by €125m. The move strengthens THG’s balance sheet as it focuses on growth in global retail and brand ownership. Moulding highlighted his £110m investment in THG shares over the past five years, alongside waiving his salary since the company’s IPO.

Kingfisher reported a 7% drop in annual profits to £528m, with total sales down 0.8% to £12.7bn. However, UK and Ireland sales rose 0.6%, driven by market share gains at B&Q and positive like-for-like growth at Screwfix. The company expects flat to low single-digit growth in the UK home improvement market for 2025, with profits forecast between £480m and £540m. CEO Thierry Garnier emphasised progress in trade sales and e-commerce, despite economic headwinds.

AO has upgraded its full-year profit guidance, expecting adjusted pre-tax profits at the top end of its £39m-£44m range. The retailer reported a 12% rise in B2C retail revenues, with like-for-like group revenues up 7% to £1.1bn. AO also appointed CFO Mark Higgins as chief operating officer and extended its credit facility to £120m. Founder John Roberts praised the company’s strong performance, forecasting another year of double-digit revenue growth and faster profit expansion in FY26.

Co-op is launching its largest-ever value campaign, matching Aldi’s prices on over 100 essential products. The initiative, available across 2,400 stores, aims to address convenience shopping’s price perception gap. Co-op has invested nearly £170m in price reductions over two years, targeting its six million members. Managing Director Matt Hood said the move reinforces Co-op’s commitment to value without compromising quality or convenience.

Morrisons plans to close 52 cafés, 18 market kitchens, 17 convenience stores, and several counters and florists to cut costs. Around 365 roles are at risk, though most affected staff will be redeployed. CEO Rami Baitiéh said the changes are necessary to refocus investment on core customer offerings, with some spaces potentially repurposed with third-party operators. The closures form part of broader efforts to streamline operations amid rising costs.